Global Supply Chain Risk Management

Transcription

1 Global Supply Chain Risk Management Alan Rust Corporate Director- Distribution ConMed Corporation November 11, 2014

2 Beautiful Upstate NY

3 Let s go Buffalo

4 A World of Solutions CONMED Corporation Overview

5 History 1970 s growth in EKG business 1980 Consolidated Medical Equipment split from Mohawk Hospital Supply, same 10 owners 1982 Name changed: CONMED Corporation 1983 Failed IPO 1980 s Continued growth in EKG electrodes with expansion into Electrosurgery 1987 Successful IPO - split adjusted price of $2.07

6 History 1989 First significant acquisition: Aspen Laboratories from Bristol Myers Company doubles in size to $35 million annual revenues 1990 Bristol acquires Concept 1991 Bristol sells the Concept Electrosurgery product line to CONMED numerous acquisitions of EKG & electrosurgery product lines & companies December 31, 1997 Acquisition of Linvatec

7 History 1999 Additional powered instruments from 3M 2001 Imagyn endosurgery line 2003 Bionix arthroscopy line 2004 CR Bard Endoscopic Technologies 2008 Italian distributor 2011 Scandinavian distributor 2012 MTF distribution agreement

8 ConMed Today Global Medical Technology Co. specializing in Surgical and Patient Monitoring products. Headquarters- Utica NY. Primary Product Categories: Orthopedic Sports Medicine General Surgery Gynecology Gastroenterology Pulmonology

9 ConMed Today Company Founded in 1973 Annual Sales- $767 million Market Capitalization- $1.2 billion Domestic Sales- 50% International Sales- 50% 3500 Employees World wide Products sold in 95+ countries- Direct/Dealers Over 10,000 active Finished Goods items sold

10 Supply Chain Complexity Manufacturing Sites (4) Utica NY Largo FL Centennial CO Chihuahua MX

11 Supply Chain Complexity Distribution Centers (7) Atlanta Ga Largo FL Brussels BE Sydney AUS Toronto CAN Beijing CN Seoul S. Kr

12 Supply Chain Complexity Sales/Service Centers: (15) Belgium Australia Austria Canada China Denmark Finland France Netherlands Italy Germany Korea Spain Sweden United Kingdom

13 Supply Chain Complexity Over 2000 suppliers (50-60) OUS Germany Singapore Czech Republic China India Korea Taiwan Hong Kong Netherlands Pakistan Japan Finland Switzerland United Kingdom

14 Summary We ve identified a significant degree of complexity and risk in our global supply chains. At a very high level in our company there is a concern that we are not managing the risk of a diverse supply chain as effectively as possible and in a cost effective manner Global Supply Chain Summit- Started to gain traction. One adverse event involving a supplier, carrier, or distribution center could impact the business. Resources, expertise, tools- a major issue

15 Major Concerns Supply Chain Disruptions- Many Types Safeguarding the Brand Social Responsibility Desire to be Compliant- Reputation Visibility to Risk Threats world-wide Tools to manage the risk C-TPAT, CEE participation Going beyond Tier 1 suppliers Assessing suppliers in Foreign Lands

16 Goal Develop a Global Strategy to Identify and understand our Supply Chain Risks Execute the tactics to mitigate these risks to the greatest extent possible

17 Plan Recognized immediately that we needed help. Lack capabilities, resources, expertise, tools, etc. Project started in Q to Identify potential partners. Attended conferences- ICPA, AAEI and spoke to many organizations about the issues and solutions. Proposals submitted and reviewed- Q Identified BSI as a strong partner in this space. Implement program in in Budget at this point

18 Questions